Total amount raised
$137.5 Millions
Latest funding date
12/01/2020
Location
Bestow has successfully raised multiple funding rounds, with the latest being a Series C round closed on December 16, 2020. The company is backed by nine investors, including Core Innovation Capital and Valar Ventures.
Keep reading to explore the intricacies of Bestow's fundraising journey and the investors backing this innovative platform.
What Is Bestow?
Bestow, founded in 2016 by Jonathan Abelmann and Melbourne O'Banion, is a life insurance technology company based in Dallas, Texas. The company specializes in building tech and data infrastructure to modernize the life insurance industry.
With a team of 101-250 employees, Bestow partners with top life insurance carriers to deploy cutting-edge technology and data solutions. These solutions aim to reduce costs, maximize efficiency, and drive growth by streamlining processes from origination and underwriting through administration.
Bestow offers a comprehensive suite of life insurance software, including e-app and e-quote technology, customizable underwriting engines, and portals for agents, underwriters, and policyholders. Their end-to-end solutions help carriers modernize their business efficiently and at a lower cost.
How Much Funding Has Bestow Raised?
- Seed Round
- Amount Raised: $2.5M
- Date: August 2017
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and develop its initial technology platform.
- Series A
- Amount Raised: $15M
- Date: May 2018
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and enhance the technology infrastructure.
- Series B
- Amount Raised: $50M
- Date: April 2020
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the business and enter new markets.
- Series C
- Amount Raised: $70M
- Date: December 2020
- Lead Investors: Breyer Capital, Valar Ventures, New Enterprise Associates, Core Innovation Ventures, Morpheus Ventures, Sammons Financial
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale protection to millions of underserved families and drive growth into new insurtech, carrier, and partner channels.
Total amount raised: $137.5M. Current valuation: Not publicly disclosed.
Key Investors
- Hedosophia
- Details: Hedosophia is a venture capital firm.
- Investment Focus Areas: Technology companies.
- Notable Investments: Not publicly disclosed.
- Valar Ventures
- Details: Valar Ventures is a venture capital firm co-founded by Peter Thiel.
- Investment Focus Areas: Fintech, software, internet companies.
- Notable Investments: TransferWise, Xero, N26.
- New Enterprise Associates (NEA)
- Details: New Enterprise Associates (NEA) is one of the world's largest venture capital firms.
- Investment Focus Areas: Technology, healthcare.
- Notable Investments: Robinhood, Coursera, Uber.
- Breyer Capital
- Details: Breyer Capital is a global venture capital and private equity firm.
- Investment Focus Areas: Technology, media, healthcare.
- Notable Investments: Facebook, Etsy, Marvel Entertainment.
- Core Innovation Ventures
- Details: Core Innovation Ventures is a venture capital firm focused on early-stage investments.
- Investment Focus Areas: Fintech, insurtech.
- Notable Investments: Not publicly disclosed.
What's Next for Bestow?
Bestow is poised to capitalize on significant opportunities, including expanding into new insurtech, carrier, and partner channels. The company aims to scale protection to millions of underserved families and offer life insurance through APIs to partners. With the recent acquisition of Centurion Life Insurance Company, Bestow is set to become a nationally licensed carrier, further broadening its reach.
Future fundraising opportunities appear promising as the company continues to grow and diversify its product offerings. The successful Series C round and ambitious expansion plans suggest that additional funding rounds could be on the horizon to support further scaling and innovation.
However, Bestow may face challenges such as overcoming the traditional life insurance industry's resistance to digital transformation and ensuring the scalability and reliability of their technology platform. Competing with established life insurance providers and other insurtech startups will also be a significant hurdle as they navigate the evolving market landscape.
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